To change to Financial mode, choose
ViewFinancial.
When you change to Financial mode, the following buttons are displayed above the Basic and Advanced mode buttons: Financial Mode ButtonsShows  Financial mode buttons.  To perform financial calculations, use the buttons described in .
FunctionButtonDescriptionExampleResultCompounding TermCtrmCalculates the number of compounding periods necessary to increase an investment of present value pv to a future value of fv, at a fixed interest rate of int per compounding period. This function uses the following memory registers: Register 0int, the periodic interest rateRegister 1fv, the future valueRegister 2pv, the present valueYou have just deposited $8000 in an account that pays an annual interest rate of 9%, compounded monthly. Given the annual interest rate, you determine that the monthly interest rate is 0.09 / 12 = 0.0075. To calculate the time period necessary to double your investment, put the following values into the first three memory registers:Register 00.0075Register 116000Register 28000Click Ctrm.92.77The investment doubles in value in 92.77 months.Double-Declining DepreciationDdbCalculates the depreciation allowance on an asset for a specified period of time, using the double-declining balance method.
This function uses the following memory registers:Register 0cost, the amount paid for the assetRegister 1salvage, the value of the asset at the end of its lifeRegister 2life, the useful life of the assetRegister 3period, the time period for depreciation allowanceYou have just purchased an office machine for $8000. The useful life of this machine is six years. The salvage value after six years is $900.
To calculate the depreciation expense for the fourth year, using the double-declining balance method, put the following values into the first four memory registers:Register 08000Register 1900Register 26Register 34Click Ddb.790.12The depreciation expense for the fourth year is $790.12.Future ValueFvCalculates the future value of an investment based on a series of equal payments, each of amount pmt, at a periodic interest rate of int, over the number of payment periods in the term.
This function uses the following memory registers: Register 0pmt, the periodic paymentRegister 1int, the periodic interest rateRegister 2n, the number of periodsYou plan to deposit $4000 in a bank account on the last day of each year for the next 20 years. The account pays 8% interest, compounded annually. Interest is paid on the last day of each year.
To calculate the value of your account in 20 years, put the following values into the first three memory registers:Register 04000Register 10.08Register 220Click Fv.183047.86At the end of 20 years, the value of the account is $183,047.86.Periodic PaymentPmtCalculates the amount of the periodic payment of a loan, where payments are made at the end of each payment period.
This function uses the following memory registers: Register 0prin, the principalRegister 1int, the periodic interest rateRegister 2n, the termYou are considering a $120,000 mortgage for 30 years at an annual interest rate of 11.0%. Given the annual interest rate, you determine that the monthly interest rate is 0.11 / 12 = 0.00917. The term is 30 * 12 = 360 months. To calculate the monthly repayment for this mortgage, put the following values into the first three memory registers:Register 0120000Register 10.00917Register 2360Click Pmt.1143.15The monthly repayment is $1143.15.Present ValuePvCalculates the present value of an investment based on a series of equal payments, each of amount pmt, discounted at a periodic interest rate of int, over the number of payment periods in the term.
This function uses the following memory registers: Register 0pmt, the periodic paymentRegister 1int, the periodic interest rateRegister 2n, the number of periodsYou have just won a million dollars. The prize is awarded in 20 annual payments of $50,000 each. Annual payments are received at the end of each year. If you were to accept the annual payments of $50,000, you would invest the money at a rate of 9%, compounded annually.However, you are given the option of receiving a single lump-sum payment of $400,000 instead of the million dollars annuity.
To calculate which option is worth more in today's dollars, put the following values into the first three memory registers:Register 050000Register 10.09Register 220Click Pv.456427.28The $1,000,000 paid over 20 years is worth $456,427.28 in present dollars.Periodic Interest RateRateCalculates the periodic interest necessary to increase an investment of present value pv to a future value of fv, over the number of compounding periods in term.
This function uses the following memory registers: Register 0fv, the future valueRegister 1pv, the present valueRegister 2n, the termYou have invested $20,000 in a bond. The bond matures in five years, and has a maturity value of $30,000. Interest is compounded monthly. The term is 5 * 12 = 60 months.
To calculate the periodic interest rate for this investment, put the following values into the first three memory registers:Register 030000Register 120000Register 260Click Rate..00678The monthly interest rate is 0.678%. The annual interest rate is 0.678% * 12 = 8.14%.
Straight-Line DepreciationSlnCalculates the straight-line depreciation of an asset for one period. The depreciable cost is cost - salvage. The straight-line method of depreciation divides the depreciable cost evenly over the useful life of an asset. The useful life is the number of periods, typically years, over which an asset is depreciated.
This function uses the following memory registers:Register 0cost, the amount paid for the assetRegister 1salvage, the value of the asset at the end of its lifeRegister 2life, the useful life of the assetYou have just purchased an office machine for $8000. The useful life of this machine is six years. The salvage value after six years is $900.
To calculate the yearly depreciation expense, using the straight-line method, put the following values into the first three memory registers:Register 08000Register 1900Register 26Click Sln.1183.33The yearly depreciation expense is $1183.33.Sum-Of-The-Years'-Digits DepreciationSydCalculates the depreciation allowance on an asset for a specified period of time, using the Sum-Of-The-Years'-Digits method. This method of depreciation accelerates the rate of depreciation, so that more depreciation expense occurs in earlier periods than in later ones.
The depreciable cost is cost - salvage. The useful life is the number of periods, typically years, over which an asset is depreciated.
This function uses the following memory registers:Register 0cost, the amount paid for the assetRegister 1salvage, the value of the asset at the end of its lifeRegister 2life, the useful life of the assetRegister 3period, the time period for depreciation allowanceYou have just purchased an office machine for $8000. The useful life of this machine is six years. The salvage value after six years is $900.
To calculate the depreciation expense for the fourth year, using the sum-of-the-years'-digits method, put the following values into the first four memory registers:Register 08000Register 1900Register 26Register 34Click Syd.1014.29The depreciation expense for the fourth year is $1014.29.Payment PeriodTermCalculates the number of payment periods that are necessary during the term of an ordinary annuity, to accumulate a future value of fv, at a periodic interest rate of int. Each payment is equal to amount pmt.
This function uses the following memory registers: Register 0pmt, the periodic paymentRegister 1fv, the future valueRegister 2int, the periodic interest rateYou plan to deposit $1800 in a bank account on the last day of each year. The account pays 11% interest, compounded annually. Interest is paid on the last day of each year.
To calculate the time period necessary to accumulate $120,000, put the following values into the first three memory registers:Register 01800Register 1120000Register 20.11Click Term.20.32$120,000 accumulates in the account in 20.32 years.
